Domestic tourism has gained significant traction in Saudi Arabia and the UAE, reshaping their economic landscapes. With a focus on balancing international and local tourist numbers, these nations are capitalising on the financial benefits of retaining high-spending residents.
Both Saudi Arabia and the UAE have implemented strategic initiatives to bolster domestic tourism. The aim is to achieve a 50-50 split between international and domestic tourism, leveraging the deep pockets of their residents to boost national economies. This shift is not only a response to external challenges but also a proactive step towards diversified growth.
The Importance of Domestic Tourism
Domestic tourism has emerged as a pivotal strategy for nations like Saudi Arabia and the UAE. By encouraging locals to explore their own countries, these nations aim to boost economic activity and retain the high-spending demographic within their borders. The focus is shifting towards achieving a balance between domestic and international tourism, targeting a 50-50 split. Both countries recognise the economic benefits of retaining high-spending domestic tourists.
UAE’s Strategy for Domestic Tourism
In the UAE, significant measures have been adopted to enhance domestic tourism. The “UAE Strategy for Domestic Tourism” was launched in 2020, with an ambitious goal to double domestic tourism expenditure. This initiative was introduced by Sheikh Mohammed bin Rashid to unify efforts within the tourism sector, aiming for a cohesive approach that benefits all regions of the UAE.
Saudi Arabia’s Domestic Tourism Boost
Saudi Arabia, on the other hand, has witnessed a surge in domestic tourism, especially after the pandemic. With lockdowns restricting international travel, Saudis began exploring their own country more frequently, leading to a substantial rise in domestic travel. In 2023, domestic tourists accounted for 75% of all visits. To further support this trend, the government aims to achieve 150 million visits by 2030, with 80 million from domestic tourists.
According to Ahmed Al Khateeb, Saudi Arabia’s Minister of Tourism, retaining high-spending Saudis has been a primary focus. The introduction of a unified Gulf visa allowing extended stays within Gulf countries has also been a strategic move to strengthen tourism ties.
Economic Impact and Growth
The economic implications of enhanced domestic tourism are significant. In the UAE, local visitor spending soared to over 55.5 billion Emirati Dirhams in 2023—a substantial increase from previous years. Such growth underscores the effectiveness of current strategies and reflects a broader shift towards embracing domestic tourism as a core economic driver.
Similarly, Saudi Arabia has seen domestic tourists contributing 114.4 billion Saudi Riyals to the economy. The emphasis on domestic tourism not only retains wealth within the country but also diversifies the tourism sector’s offerings.
Future Goals and Collaboration
Looking ahead, both nations are set on expanding their domestic tourism markets. By 2030, the UAE targets increased spending on domestic tourism, aspiring to reach a balanced ratio with international tourism. This objective aligns with the broader regional collaboration within the Gulf Cooperation Council and initiatives such as the aforementioned unified visa.
Saudi Arabia is equally ambitious, aiming for an impressive 70 million international visits by 2030 while maintaining a robust domestic market. This balanced approach is designed to maximise the economic benefits associated with tourism.
Challenges and Opportunities
The transition towards a balanced tourism model presents several challenges. For instance, maintaining the interest of domestic tourists once international travel becomes more accessible is critical. However, the unique cultural and historical attractions within these nations offer promising opportunities to captivate both local and international tourists.
Moreover, the shared vision among Gulf countries to enhance regional tourism creates a unique opportunity for collaboration. By working together, these nations can promote a unified tourism strategy that benefits the entire region.
Conclusion
Ultimately, domestic tourism remains an integral part of Saudi Arabia and the UAE’s economic vision. By fostering an environment where residents spend more within their countries, these nations not only boost their economies but also create a sustainable model for future growth. With ongoing initiatives and regional cooperation, the future of domestic tourism in the Gulf appears promising.
Domestic tourism is now a cornerstone of economic strategy in the Gulf. By focusing on enhancing local experiences, Saudi Arabia and the UAE are paving the way for a balanced tourism ecosystem. This approach not only promises economic growth but also cultural enrichment, positioning both nations as exemplary models for leveraging domestic tourism.